UK car production fell off a cliff in 2022 due to semiconductor shortages


It can be easily said that automobiles have become the world’s largest mobile computing devices. The global race for semiconductors has reached a fever pitch, and UK car manufacturers are increasingly struggling to access this key component. As a result, the number of new cars produced in the UK fell off a cliff in 2022. With no end in sight for the shortage, 2023 could be equally troublesome for the industry.

As demand for semiconductor chips skyrockets, car manufacturers are challenged to maximise the use of limited production capacity, maintain quality, respond to changing regulations, and reach potential profits. Autonomous, semi-autonomous, and driver-assist capabilities will become pervasive (if not government mandated) over the next decade, driving more demand for semiconductors in the automotive and trucking industries.

Diversification of a car manufacturer’s supply portfolio means the risk of supply shortages is spread across a wider range of semiconductor purveyors. Even with friend-shoring or near-shoring plans, countries are implementing trade policies that limit where semiconductors can be shipped for assembly into finished goods. Supply chain technology will be even more essential as complexity increases. Sellers, makers, and movers will be called up to make connected decisions considering all of these factors (and others) in a changing, connected world. A connected supply chain helps semiconductor manufacturers take on all these challenges.